With the Philippines no more the “sick man of Asia” and instead a “strong man” now, high-end resorts are mushrooming on its islands to meet the burgeoning demand of holidaymakers and international investors.
These 7,000 islands provide a breathtaking paradise of sandy beaches, lush vegetation and azure waters teeming with aquatic life, reefs and shipwrecks ideal for snorkellers and divers.
The country has capped three years of above-six per cent growth thanks to the government’s commitment to stable growth, a young population and increase in the rank of its working-age citizens, surge in exports and swell in domestic consumption.
These major plus points – together with the fact that international visitors account for 8.2 per cent of gross domestic product (source: Philippine Statistics Authority), domestic travellers spend six times as much as international tourists (Department of Tourism) and the three Philippine islands of Palawan, Boracay and Cebu make it to Time and Leisure magazine’s “World’s Best Islands” list – have drawn investors to meet the rising demand for resorts and hotels.
According to international property investment company Property Frontiers, the increase in both domestic and international visitor numbers has created significant opportunities for investors in Philippine real estate. Demand for high-end hotel accommodation has never been greater and the country is racing to increase supply enough to keep up with demand.
Property Frontiers said that with high quality new resorts required in key tourism hotspots, international investors are keen to buy into the Philippines now in order to be part of the wave of new construction that is necessary to service the increased level of visitors.
It also said commercial real estate services company Jones Lang LaSalle’s (JLL) findings that the Asia Pacific region is the most improved in the world for real estate transparency has furthered the trend of international demand for resort investments in the Philippines.
JLL’s latest report shows real estate transparency has become a main focus point for investors, and that transparency is important for both commercial real estate investors and occupiers because it reduces uncertainty in cross-border transactions.